DRAM contract prices see first fall since 2012, says DRAMeXchange

Jessie Shen, 19 July

DRAM contract prices, which are updated semi-monthly, showed their first fall for 2012 in early July, according to data collected by DRAMeXchange.

Contract prices for 4GB DDR3 modules averaged US$20.25 in the first half of July, down 4.7%, while those for 2GB parts remained flat at US$11.25 on average, DRAMeXchange disclosed.

Judging from PC OEMs' shipment data, DRAMeXchange indicated that there has been no clear sign of a seasonal up-tick driven by back-to-school demand. The price fall also reflects weakness on the demand side, the memory price tracker said.

Additionally, as chip suppliers have no plans to cut back production, the DRAM market is still in a state of oversupply, DRAMeXchange pointed out. If demand remains sluggish, contract prices will likely continue their downward trend, the price tracker said.

Suppliers generally expect to maintain their quotes for 4GB modules above the US$20 mark in July, DRAMeXchange added.

If prices are under pressure to fall further later in 2012 on disappointing demand, chip producers might consider scaling down their supply to hold prices and mitigate the impact of falling ASPs, DRAMeXchange said.